Q&A with Apricot: Investing Through an International vs. Armenian Broker

When venturing into the world of investing, one of the initial  and most important decisions you’ll face is choosing a broker. We already addressed the key factors to consider when choosing a Broker/Investment Company. An investor can also face the decision of whether to opt for an international broker or stick with an Armenian one. In this article, we will address some of the key reasons an Armenian investor might prefer to invest through an Armenian broker.

Some of possible inconveniences for Armenians when investing through an international broker

• International bank transfer fees when funding your account or withdrawing money.
• No on-site support team and language barriers making it harder to access support as you’ll need to follow their time zone and contact means. 
• No Central Bank of Armenia’s regulation | Unlike local brokers, international ones are not regulated by the Central Bank of Armenia. This means they don’t have to adhere to Armenian financial regulations and investor protection laws. This doesn’t necessarily mean that the international broker is not protecting customer rights, but it means the investor will have to check the regulations the broker follows to see how his/her rights are protected.
• Inheritance complications | In the unfortunate event of the investor’s passing, their heirs might face a complex and lengthy process to access and manage the investments held by an international broker.

Some of possible conveniences for Armenians when investing through an Armenian 

• Central Bank’s regulation | To provide brokerage services in Armenia, Armenian companies must be licensed by the Central Bank of Armenia. This provides a layer of security and ensures compliance with local regulations. This includes the benefit of accessing the Financial System Mediator, an independent body that provides free dispute resolution between clients and financial organizations in Armenia.
• No international bank transaction fees.
• No language barriers and a more familiar environment.
• Ease of documentation request | Need a physical copy of your brokerage account statement for a bank or embassy? In case of an Armenian broker, you can request it and pick it up from the broker’s office.

Ultimately, the choice is up to each investor to weigh their individual needs and priorities.

It’s important to remember that investments are subject to market fluctuations and carry inherent risks. Consider your financial goals and risk tolerance before investing.

Apricot Capital is regulated by the Central bank of Armenia.

*The examples in this text are for illustrative purposes only. This does not constitute investment advice or a recommendation to buy or sell any specific investment instrument. The past performance mentioned in this text is not indicative of future results.